The Board of the National Student Financial Aid Scheme (NSFAS) Chairperson, Ernest Ernest Khosa is accused of getting millions in kickbacks from service providers. Picture: Thobile Mathonsi/Independent Newspapers
The law firm appointed to investigate allegations against National Student Financial Aid Scheme (NSFAS) board chairperson Ernest Khosa has about a month to produce legal advice and will also be expected to write a report for presentation to the board.
Khosa took a leave of absence last month after the Organisation Undoing Tax Abuse (Outa) released a report accusing him and Higher Education, Science and Technology Minister Blade Nzimande of getting millions of rand in kickbacks by NSFAS service providers as well as at least R1 million towards an SACP conference.
Outa claimed this was done in return for tenders, and protection for service providers, and the evidence was in voice-recorded meetings.
Four service providers, Coinvest Africa, Tenet Technology, Ezaga Holdings and Norraco Corporation, were contracted for five years for the direct payment of student allowances. Despite an investigation by Werksmans Attorneys finding that certain procedures were not followed, and that there was an alleged conflict of interest in the appointments, the service providers were still involved in paying student allowances.
Both Nzimande and Khosa have denied the allegations, with the former promising to challenge them in court, while the latter is being investigated by the law firm.
The entity’s acting chairperson, Professor Lourens van Staden, said this week that the board had resolved to approve the terms of reference for the probe.
This emerged when NSFAS top brass appeared before the portfolio committee on higher education to provide updates on several issues, including the entity’s state of governance and management.
“The board has resolved to extend the scope of Werksmans Attorneys to further conduct the implementation of the recommendations such as instituting disciplinary procedures against everyone implicated in the report.
“As the board we further approved the probing of Mr Khosa and a reputational firm has been appointed and will report the outcomes to the board once completed.
“The terms of reference are, we want the legal firm to familiarise themselves with the Outa reports, NSFAS Act, the board charter, code of conduct and other relevant documents, to report the veracity of allegations of the Outa report that relates to the board chairperson and the board itself.
“Further to this, appropriate steps such as audits and risks, also the potential impact of the work of NSFAS in reviewing the contracts of the companies involved in the direct payment and any other related matters that may arise out of the examination and consideration of the report,” said Van Staden.
The firm is expected to produce legal advice in a month’s time and will also be expected to write a report for presentation to the board.
A turnaround strategy for the board in dealing with management matters including capacity issues is also expected to be planned.
This was due to many vacancies at executive level where one person was dealing with more than one portfolio.
“In terms of the turnaround strategy we have appointed three turnaround specialists who will have the responsibility to assist the executive to implement the strategy to address organisational changes.
“Another key matter is the establishment of human resources for the board as the current one did not cater for the real mandate of NSFAS,” Van Staden added.
EFF MP Mandla Shikwambana called for the board and management to be dissolved.
Committee chairperson Nompendulo Mkhatshwa gave NSFAS seven working days to respond in writing to some questions. She said the entity could not afford to be placed under administration again.
Another MP questioned allegations that Werksmans firm might also be involved in some shenanigans.
Higher Education director-general Nkosinathi Sishi said he has noted the concerns and frustrations against corruption and reported incidents.
“I think it was important for the acting chair to indicate that the Werksmans firm is a well-established firm and they were not working alone when they conducted the investigation. They worked with advocate Tembeka Ngcukaitobi and they are now responsible to ensure the recommendations are being implemented, to me that is a progressive move because time and resources will not be wasted.
“This will help to know who stays and goes, also in pursuing the termination of contracts of the fin-tech companies.
“Notwithstanding challenges, NSFAS brings relief to many poor people in SA and can not be allowed to fail. “I commit my office to ensure all issues raised are dealt with and we will continue to account to the committee about the turnaround plan, especially about student fund support,” said Sishi.
Cape Times
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